## Monday, September 5, 2016

### Sharp EL-738: A Short Tutorial

Sharp EL-738:  A Short Tutorial

This is a short tutorial on how to use some of the common features of the Sharp EL-738 financial calculator.  There was a request for a video tutorial in the comments, however given the time frame I am able to work with, I think I can write a tutorial and cover more faster.  So hope this helps!

Let’s get to it.

Set Decimal Settings

To Fix 2 Mode:  [SET UP], 0 (DSP), 0 (TAB), 2

To Float (B) Mode:  [SET UP], 0 (DSP), 3 (FLO_A)

The difference between FLO_A (option 2) and FLO_B is the limit of how small a number can be before the calculator switches to scientific notation.  .000000001 for A and .01 for B.

Time Value of Money

To set the number of payments:  press [2ndF] [I/Y] (P/Y).  Enter the payments per year and press [ENT].  You can enter compounding periods (C/Y) per year separately.

Toggle Begin/End Mode:  [2ndF] [ FV ] (BGN/END).  Beginning mode is indicated by “BGN” in the display.

Clear the Financial registers:  [2ndF] [MODE] (CA).  Caution: This sets the P/Y to its default value of 1.

Calculation:  Enter each of the date and press the appropriate financial variable (N, I/Y, PV, PMT, or FV).  To calculate, press [COMP] then the financial variable.

Example:  Find the monthly payment of a \$160,000 loan to be paid back in 15 years with 3.5% interest.

If not already, set P/Y to 12 and calculator to END mode (see the above).
160000 [ PV ]
15 [2ndF] [ N ] (xP/Y) [ N ]
3.5 [I/Y]
0 [ FV ]
[COMP] [PMT]

Result:  -1143.81

Amortization

Press [AMRT].   Enter the first period (P1) then press [ENT].  Scroll down [ ↓ ] and enter the second period (P2) then press [ENT].  Scroll down for the following results (calculated automatically):  BALANCE, ΣPRINCIPAL (amount of principal paid in period range specified), ΣINTEREST (amount of interest paid in period range specified).

Take the last example and set P1 to 1 and P2 to 24.  After two years:
[AMRT] 1 [ENT] [ ↓ ]
24 [ENT] [ ↓ ]
Result:  BALANCE:  143,191.61   [ ↓ ]
Result:  ΣPRINCIPAL = -16808.39  [ ↓ ]
Result:  ΣINTEREST = -10643.05

Days Between Dates

Press [DATE].   M-D-Y 1 represents the beginning date.  M-D-Y 2 represents the ending date.  DAYS is the number of days between the two dates.  This assumes the U.S. date system is set up.

Scroll up and down.  Enter two of the three variables and press [COMP] to solve for the third.

Example:  A bond is issued on 7/1/2016. The bond is to be repaid in 120 days.  When is the bond supposed to be repaid?  Assume an actual calendar.  ([2ndF] [COMP] (360/ACT) toggles calendar counting mode)

[DATE]
For M-D-Y 1:  07, 01, 2016 [ENT]
[ ↓ ], [ ↓ ]
For DAYS:  120 [ENT]
[ ↑ ] to M-D-Y 2, press [COMP]

Result:  10/29/2016

Cash Flows

To clear all cash flows:  Press [2ndF] [ENT] (CLR-D).  I also recommend setting P/Y to 1 (pressing [2ndF] [MODE] (CA) will do it)

To enter cash flows:  Enter the cash flow, press [ ENT ].  (Don’t be in any menu or worksheet)

To enter cash flows with frequency greater than 1:  Enter the cash flow, press [(x,y)], enter the frequency, press [ ENT ].

To calculate NPV (net present value):  press [2ndF] [CFi] (CASH).  Enter the periodic rate at the RATE(I/Y)=, press [ENT], then [ ↓ ], and press [COMP] at the NET_PV prompt.

To calculate IRR (initial rate of return):  press [2ndF] [CFi] (CASH).  Press [COMP] at the RATE(I/Y)= prompt.   For this purpose, ignore the NET_PV register.

Example:   Calculate the NPV and IRR of the following cash flows:
 Flow # Amount CF0 -\$10,000 CF1 \$5,000 CF2 \$2,000 CF3 \$5,000

For NPV, assume a return rate of 10%.

Cash Flows:
[2ndF] [MODE] (CA)
[2ndF] [ENT] (CLR-D)
10000 [+/-] [ENT]   (Display:  DATA SET: CF 0.00)
5000 [ENT] (Display:  DATA SET: CF 1.00 (and so on))
2000 [ENT]
5000 [ENT]

Net Present Value:
[2ndF] [CFi] (CASH)
RATE I/Y=:  10 [ENT]
[ ↓ ]
NET_PV=:  [COMP]
Result:  -45.08

Internal Rate of Return:
[ ↑ ]
RATE(I/Y)=:   [COMP]
Result:  9.74

Some quick instructions about depreciation and statistics:

Depreciation

The EL-738 has three depreciation modes:  Straight Line (SL), Sum of the Years Digits (SYD), and Declining Balance (DB).  To change the depreciation mode, press [SETUP], 2 and then:
0 for SL, 1 for SYD, 2 for DB.

To the Depreciation worksheet:  Press [DEPR].
Mode:  If the Declining Balance Deprecation Mode is set, enter the rate (for 200%, enter 200, press [ENT])  [ ↓ ]
Life (N):  Enter the number of years of the life of the asset, [ENT], [ ↓ ]
Start Month:  Enter the month when the asset is acquired (1 = January, 2 = February, etc), [ENT], [ ↓ ]
COST (PV): Cost of the asset, [ENT], [ ↓ ]
SALVAGE (FV):  Salvage value of the asset, [ENT], [ ↓ ]
YEAR=  Enter year of depreciation that you want to analyze, [ENT], [ ↓ ].
The next three lines are calculated: DEPRECIATE (the deprecation for the year, RBV (remaining book value), RDV (remaining depreciation value)

Statistics

To enter statistics mode, press [MODE], 2.  Select statistics type:
0:  SD, single variable
1:  LINE: linear regression, y = a + bx
3:  EXP:  exponential regression, y = a * e^(bx)
4:  LOG:  logarithmic regression, y = a + b * ln x
5:  PWR:  power regression, y = a * x^b
6:  INV:  inverse regression, y = a + b/x

Clearing Data:  [2ndF] [DATA] (CLR D)
Entering Data:  x [(x,y)] y/freq [ENT] (DATA)
Recall variables:  [ALPHA] [(appropriate key)] [ = ]

Examples:
Mean:  μx: [ALPHA], 4;  μy: [ALPHA], 7
Sample Deviation:  sx: [ALPHA], 5; sy:  [ALPHA], 8
Regression variables a, b, c, r:  [ALPHA] [ ÷ ], [ DEL],. [ × ], [ ( ], respectively

You can find detailed instructions for the other operations (cost/sell/margin worksheet, Δ% worksheet, bond worksheet, depreciation, scientific functions), plus more examples, in the manual:  http://sharpcalculators.com/images/Manuals/Financial/EL738F_Manual_Branded.pdf

This blog is property of Edward Shore, 2016.

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